July 11, 2016

Merkley objects to delayed implementation of Volcker Rule

Senator Jeff Merkley (D-Ore) has issued a statement regarding the Federal Reserve Board's announcement that it would delay implementation of a key part of the Volcker Rule until 2017. Section 619 of the Dodd-Frank Act generally prohibits banking entities from engaging in proprietary trading and from holding interests in, sponsoring, or maintaining some other relationships with hedge or private equity funds--a provision commonly called the Volcker Rule.

The Fed recently granted the final permitted broad-based extension of the deadline by which covered institutions must come into full compliance with these restrictions. According to Merkley, "It's time for our regulators to stop carving out loopholes from the Volcker Rule and instead draw clear, bright lines that protect our economy and separate hedge fund activities from traditional banking."